China’s largest e-commerce firm Alibaba Group Holding’s payment affiliate Ant Financial has agreed to acquire a stake in food ordering and restaurant discovery platform, Zomato, for $50m.
As per an agreement, Info Edge India will sell a 6.66% stake in Zomato either directly or through its online recruitment-based unit Naukri Internet Services.
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Subject to shareholders and other requisite approvals, the transaction will involve a divestment of 32,629 equity shares of Zomato.
Info Edge India owns about 44.74% of the paid-up share capital of Zomato on fully converted and diluted basis.
In addition, Info Edge India revealed that Zomato has signed an agreement to raise $150m from Ant as part of the deal.
Zomato founder and CEO Deepinder Goyal was quoted by livemint.com as saying: “No comments. We are a cockroach company; we are very focused on our work, and this round is not going to change that.”
The expected date of completion of sale/disposal is on or before 15 April 2018.
Zomato owns and operates the website www.zomato.com that generates revenue from advertisements of restaurants and lead sales. During the fiscal year 2016-2017, Zomato recorded net sales of Rs3.32bn ($51.58m).
From Vancouver to Auckland, Zomato is used by millions every day in more than 10,000 cities across 24 countries.
